Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-06-22

The Fidelity National Bank at Cincinnati
Closes Its Doors and Its Managers Look
ing Down the Road that Fish and Ward
Notwithstanding Discovery of a Bank
Examiner.
CINCINNATI, June % The sequel of Bank
Examiner Powelrs order regarding the Fidel-
ity National bank was that on Tuesday, in
stead OF recognizing and continuing bust
ness it did not open its doors, and a meeting
OF the directors was called which lasted from
a. m. until noon While this was going on
the news having rapidly spread, the street
was lined with anxious depositors, who were
IN anything but comfortable frame of mind
At the meeting of the directors MIR. Powell,
the bank examiner announced that, owing
to impairment of the banks resources the
government would take charge of it, and
would appoint receiver to wind up the bust
nese, 1t is said unofticially, that the alterna
| tive was given of continuing in business by
reorganization which would leave out Vice
President Harper, Cashier Baldwin, and As
sistant Cashier Ben Z. Hopkins, but that the
| directors were unable to agree upon such a
| plan, or were unwilling to take the risk of
run following the interference of the govern
ment. The outcome, however, was the APP
| polntment of Mr. John r. DeCamp, vice
| president of the Metropolitan National bank
receiver, and he vas placed in charge of the
| banks affairs.
| Various causes have been assigned for the
suspension at this time Upon excellent
| authority it is learned that the examiner was
making the rounds of the local national
| banks last week and by accident or prompted
| by the rumors and universal uneasiness felt
in relation to the Fidelity, began an examin-
| alton OF the affairs OF that concern last Fri
day evening Monday night the examina-
| ton had reached such point that the exam
| liner, for reasons which he discovered in the
transactions of the concern, 1t is said, reflect
ing upon certain bank officials in their con
nectlon with the great Chicago wheat deal,
made the demand noted i'll these dispatches
yesterday. 1t also comes from perfectly
| straight channel that the officials of the var
ious banks of the city held meeting Satur
day evening in which it was resolved that
every bank would lend to the Fidelity just a,
long as 1t could put up good collateral and il
was understood that they would lend nC
longer. Though this matter was kept quiet
| enough of it i'll connection with other sllS
PIGEONS against the bank, leaked out to caus,
a large number of depoSitors TO withdraw
their funds from the bank Monday. 1t is
said that had not the government officiali
stepped in the suspension would have re
suited from a run upon the institution in 6
day or two. .
Briggs Swift, the president, publicly state
that no depoSitor in the bank will lose cent
| h.
; the bank securities are equal to all demand.
upon it when converted into cash.
Tuesday afternoon United States Marsha
Urner arrested E l.. Harper, vice presiden
of the Fidelity bank; Ammi Baldwin, cashier
and B. J. Hopkins, assistant cashier of thu
same bank. un Ter section 1929 revised stat
utes. The warrants were sworn out by Ban
Examiner Eugene Powell. Harper is charge
with having issued without authority of tn
directors of the bank certain certificate
: of deposit amounting to 100000
Baldwin with signing a check upon tn
Chemical National bank for $4,000 with
out authority of the directors, and Hopkir
with having issued certificates to the amour
Of $500 900. They waived examination an
, were bound over to the United States gran
jury. Harper gave bond for sal. 600. BalC
win and Hopkins gave $4,000 each. tn
a waving examination is regarded a virtu,
Il acknowledgment Of their guilt.
The arrest is made under the same section o
the United States laws under winch Fish an
Ward, of the defunct New y ork Marin
+ bank, We're sent TO Sing Sing.
0 Suit in attachment has been hrough
Z against the Fidelity by the Union Nation,
bank of Cleveland to recover S67, lSl. IA tC
moneys paid to and for the use of the defend
ants. 1t was charged that the debt W;
| fraudulently and criminally contracted.
Harper made an assignment of his PROF
ertv, estimated at S:,00U,000, for the benef
of his creditors. Neither his personal liabil
ties nor those of the bank can lie accuratel
stated as yet. The closing Of the bank an
s the arrest of the officers have produced pre-
found sensation at Cincinnati. 1t Is rumore
that the city had $500, 900 on deposit in IL
bank when it closed Its doors The amour
lost by President Harper i'll the wheat de
is put at 81, 10000 by those in a position
know the facts